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Property and Casualty Insurance Market in Turkey - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 150 Pages
  • March 2023
  • Region: Turkey
  • Mordor Intelligence
  • ID: 5759305
The property and casualty insurance market in Turkey is estimated at approximately USD 8.8 billion in the current year and is poised to grow at a CAGR of greater than 2% during the forecast period.

All functions of the insurance value chain have been impacted by the COVID-19 pandemic. The only differences can perhaps be found in the scale and in timelines - immediate (during the pandemic), near term (as the pandemic subsides, but economic slowdown continues) and long term (as the economy rebounds). The primary needs include process changes in the claims function and replacing site visits with electronic inputs from customers. In the scenario that the pandemic continues unabated beyond spring, the Sales & Marketing, Underwriting and Actuarial functions will also need to address the impact of remote working, social distancing, and intra-city movement restrictions. The sales teams require enablers for remote meeting with customers, digital forms for new business, while Underwriting teams need to perform remote assessments and Actuarial teams need to factor in pandemic and its related risks in product pricing. While the immediate direct impact of COVID-19 on Insurance claims is obvious, insurers will need to focus on actively managing their investment portfolios.

While pandemic cover is typically explicitly excluded in certain policies, and treated under ‘force majeure’ in certain others, instances of governments and regulatory authorities issuing advisory to insurers to consider the COVID-19 related claims compassionately have started to trickle in. This will add complexity into the claims process and will also be an unplanned drain on reserves.

Motor insurance was the largest line of business in 2020 followed by property insurance, non-life personal accident and health (PA&H) insurance, marine, aviation and transit (MAT) insurance, liability insurance, financial lines, and other segments, respectively. Marine, aviation and transit (MAT) insurance and liability insurance lines of business are expected to exhibit significant growth during the projected period.

Around 39.1% of customers in the country preferred purchasing home building and contents insurance from banks. It was the most demanded channel for all groups of customers except 18-24 years age group. It had a 62.5% preference rate among customers aged between 55-64, which was indicative of a strong preference for co-ordination with the banks. The second most-preferred channel were insurers, followed by insurance brokers.

There is potential for further growth in non-life insurance, as non-life insurance penetration currently stands at only 1.3% of GDP much lower than the average for OECD countries. Most insurers operating in the segment are foreign-owned or partnered, showing it is a popular area of investment for foreign companies.

Turkey Property & Casualty Insurance Market Trends

Non-Life Insurance Market is the Highest in the Turkish Insurance Industry

Turkish insurers potentially significant exposure to catastrophe risk from earthquake events, many domestic insurers have limited net exposure to large property and engineering business as result of surrendering the bulk of commercial risk to reinsurers and the majority of residential property risks being absorbed by the presence of the government-backed Turkish Catastrophe Insurance Pool(TCIP). Many insurers are more focused on underwriting motor business, which accounted for almost 58% of total non-life premiums in 2020. Underperformance of MTPL portfolios has been driven principally by regulatory and legal changes in recent years.

High Growth of Gross Premiums Written by Non-Life Insurance Companies in Turkey

Considering the large penetration of non-life insurance in Turkey compared to life insurance, the non-life insurance companies both local and international operating in the country have witnessed significantly higher growth in the past few years. Although the COVID-19 pandemic had a negative impact on the total gross written premiums of non-life insurance, the market largely recovered in 2021. The trend of growth is also expected to sustain during the forecast period owing to the current conditions in the country.

Turkey Property & Casualty Insurance Market Competitor Analysis

The report covers the major players operating in the market studied. The market is Consolidated, with only the top three companies holding around 30% of the market share. The market is expected to grow in the coming years due to regulatory changes and many other factors driving the market growth in the forecast period. Companies such as Allianz Sigorta AS, Anadolu Anonim Türk Sigorta Sirketi, Aksigorta AS, Axa Sigorta AS, and Sompo Japan Sigorta AS, among others have been profiled in the report.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Insights on Various Regulatory Trends Shaping Property and Casualty Insurance Market
4.6 Insights on Impact of Technology and Innovation in Operation in Property and Casualty Insurance Market
4.7 Impact of COVID-19 on the Market
5.1 Insurance type
5.1.1 Home
5.1.2 Motor
5.1.3 Other Insurance Types
5.2 Distribution Channels
5.2.1 Direct
5.2.2 Agency
5.2.3 Bank
5.2.4 Other Distribution Channels
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Allianz Sigorta AS
6.2.2 Anadolu Anonim Türk Sigorta Sirketi
6.2.3 Aksigorta AS
6.2.4 Axa Sigorta AS
6.2.5 Sompo Japan Sigorta AS
6.2.6 Ziraat Sigorta AS
6.2.7 Mapfre Sigorta AS
6.2.8 HDI Sigorta AS
6.2.9 Halk Sigorta AS
6.2.10 Günes Sigorta AS*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Allianz Sigorta AS
  • Anadolu Anonim Türk Sigorta Sirketi
  • Aksigorta AS
  • Axa Sigorta AS
  • Sompo Japan Sigorta AS
  • Ziraat Sigorta AS
  • Mapfre Sigorta AS
  • HDI Sigorta AS
  • Halk Sigorta AS
  • Günes Sigorta AS